PSI with Increased Sales and Improved Result in First Six Months

- Sales in first six months grow for first time since 2001

- Network and Production Management segments develop positively

- Additional measures introduced in Information Management

Berlin, 2 August 2005 – For the first time since 2001, the PSI Group again increased IFRS sales in the first six months of 2005 to 57.2 million euros (2004: 56.8 million euros). The EBIT for the first six months improved to 0.1 million euros (2004: –7.8 million euros); the group result to –0.2 million euros (2004: –8.8 million euros). Last year the result of the second quarter contained a one-off burden of 4.2 million euros. On 30 June 2005 the PSI Group employed 1,054 persons (30 June 2004: 1,144).

 

In the Network Management segment (energy, telecommunications, traffic) sales increased by 5% to 32.0 million euros in the first six months (2004: 30.5 million euros). The EBIT improved to 0.4 million euros (2004: –1.1 million euros). Production Management (industry, logistics) again had a positive quarterly result so that the EBIT for the first six months improved to 0.7 million euros (2004: –2.7 million euros). Sales in Production Management increased by 10% to 21.7 million euros (2004: 19.7 million euros).

Information Management (government, services) had sales of 3.5 million euros (2004: 6.5 million euros) in the first six months; the EBIT was –1.0 million euros (2004: –3.5 million euros). Here, the weak market in government and consulting again displayed a negative impact on the segment’s orders.

 

The group had new orders totalling 57 million euros (2004: 61 million euros) in the first six months. The order inventory on 30 June decreased slightly to 72 million euros compared to 31 December 2004. With 17.1 million euros, the liquidity on 30 June 2005 was 5.5 million euros above the value of the same quarter of the previous year (30 June 2004: 11.6 million euros).

 

 

Following the introduction of the new German Energy Industry Act on 12 July 2005 and initial orders, the Network Management segment expects a normalization of the investment climate in the gas market.

 

Production Management has had positive results for the last four quarters and won the first major order from a Chinese steel producer in the second quarter. All the early indications such as new orders and capacity indicate a continuation of the positive trend in this segment.

 

The field of Information Management suffered under a low volume of new orders and very weak market prices. In addition, the development costs for the new resident registration systems are completely contained in the segment’s costs. For that reason, the PSI Board of Directors endorsed the transfer of product derivates from successful business units and decide on short-time working so as to improve the costs situation and the market access of Information Management in the short-term. The number of employees in this segment was decreased by 13 % compared to last year.

 

The investment climate in target markets important to PSI has improved noticeably since the beginning of June so that the management expects continued improvement in the result starting in the fourth quarter.

 

PSI AG develops and integrates individual solutions, on the basis of its own software, for the management of large networks (electricity, gas, oil, telecommunications, transport), cross-company production management (steel, chemicals, machinery, automotive, logistics) and information management for government and service providers. PSI was founded in 1969 and employs 1,050 persons in the group.